My work is below: I got part A but was a little confused on part B!

1. Mr. Hewitt is deciding between two investment opportunities: Investment A and Investment B. Both investments will require an initial nondeductible cash outlay of $100,000 in 2020 (the current year). Other relevant details on each investment are as follows: Investment A will provide Mr. Hewitt with annual pretax income of $14,000 in each of the following three years: 2021, 2022, and 2023. This income will be taxable to Mr. Hewitt at his ordinary income tax rate of 35%. Mr. Hewitt can then recover his initial investment of $100,000 in 2023 tax-free. Mr. Hewitt must also pay a non-deductible investment advisory fee of $500 per year in 2021, 2022, and 2023 to maintain Investment A. o Investment B will not provide any annual income to Mr. Hewitt after he makes his initial investment. However, Mr. Hewitt can sell Investment B in 2023 for $130,000. Any gain on this sale will be taxed at Mr. Hewitt's long-term capital gains tax rate of 15%. Assuming a discount rate of 7%, which investment maximizes the NPV of Mr. Hewitt's post-tax investment income - and by how much? Support your answer with clearly labeled calculations. Investment A. 2020: ($100,000) 2021: $14,000 - $500 = $13,500 * 35% = $4,725 13,500 4,725 = 8,775 / 1.07^1 = $8,201 2022: $14,000 - $500 = $13,500 * 35% = $4,725 13,500 4,725 = 8,775 / 1.07^2 = $7,664 2023: $14,000 - $500 = $13,500 * 35% = $4,725 13,500 4,725 = 8,775 + 100,000 = 108,775 / (1.07)^3 = $88,796 Investment A total: $4,661